Revenue for these game are also generated through the hold. With its online casino, DKNG offers a number of traditional casino games such as blackjack, roulette, baccarat and slot machines, as a well more video game type offerings such a Rocket, where users must cash out of their bets before a rising rocket crashes. The sportsbooks create odds and will move the odds in order to try to even out the betting action. While not always readily apparent, sportsbooks take a cut on the bets they bring in known as the vig and generally aim to have an even amount of action on both sides of the bet, as not to take a side. This is achieved in slightly different ways based on its offerings. The company generates revenue by taking in more money in bets than it pays out, which in the gambling industry is commonly referred to as the hold. The company also designs the software to enable these activities. It offers sports betting, online casino games, and daily fantasy sports. Company ProfileĭKNG is an online fantasy sports and gambling platform operating in the U.S. Until then, DKNG stock is a speculative bet. However, it needs to prove that it can get to EBITDA and free cash flow positive and still grow.
The opportunity in front of DraftKings ( NASDAQ: DKNG) is clear.
